Bank7 Corp. Announces 2Q 2021 Earnings

Rhea-AI Summary

Bank7 Corp. (NASDAQ: BSVN) reported exceptional results for Q2 2021, highlighting a 21.2% increase in net income to $6.1 million and a 24.9% rise in EPS to $0.67. Key metrics include a 12.8% growth in total assets, reaching $1.1 billion, and total loans increased by 11.2% to $932 million. The efficiency ratio improved to 35.02% from 35.33%, reflecting enhanced operational efficiency. The bank's capital ratios remained robust, well above regulatory minimums, reinforcing its financial stability.

Positive

• Net income increased by 21.2% to $6.1 million.
• Earnings per share (EPS) rose by 24.9% to $0.67.
• Total assets grew by 12.8% to $1.1 billion.
• Total loans rose by 11.2% to $932 million.
• Efficiency ratio improved to 35.02% from 35.33%.
• Tangible book value per share increased by 17.8% to $12.76.

Negative

• None.

OKLAHOMA CITY, July 29, 2021 /PRNewswire/ -- Bank7 Corp. (NASDAQ: BSVN) ("the Company"), the parent company of Oklahoma City-based Bank7 (the "Bank"), today reported unaudited results for the fiscal quarter ended June 30, 2021.  "We are pleased to announce a record quarter of net income and EPS. Our strong loan growth and loan fee income, combined with our excellent efficiency ratio, continues to produce outstanding results. As we move forward, our goal is to continue to produce exceptional results through organic growth and the pursuit of strategic acquisitions," said Thomas L. Travis, President and CEO of the Company. 

Three months ended June 30, 2021 compared to three months ended June 30, 2020:

• Pre-tax, pre-provision earnings of $9.4 million compared to $8.1 million, an increase of 15.6%
• Net income of $6.1 million compared to $5.0 million, an increase of 21.2%
• Interest income on loans, including loan fee income, totaled $14.4 million compared to $13.4 million, an increase of 9.5%
• Total assets of $1.1 billion compared to $1.0 billion, an increase of 12.8%
• Total loans of $932.0 million compared to $837.9 million, an increase of 11.2%
• Total deposits of $1.0 billion compared to $894.2 million, an increase of 12.8%
• Tangible book value per share of $12.76 compared to $10.83, an increase of 17.8%
• Average cost of funds of 0.34% compared to 0.76%, a decrease of 54.7%
• Earnings per share of $0.67 compared to $0.54, an increase of 24.9%
• ROAA of 2.39% compared to 2.09%, an increase of 14.6%
• ROATCE of 21.90% compared to 20.72%, an increase of 5.7%

Six months ended June 30, 2021 compared to six months ended June 30, 2020:

• Pre-tax, pre-provision earnings of $17.5 million, compared to $15.5 million, an increase of 12.6%
• Net income of $11.2 million compared to $10.1 million, an increase of 11.1%
• Efficiency ratio of 35.02% compared to 35.33%, a decrease of 0.86%
• Average cost of funds of 0.37% compared to 0.91%, a decrease of 58.9%
• ROAA of 2.25% compared to 2.20%, an increase of 2.51%
• ROATCE of 20.63% compared to 20.52%, an increase of 0.54%

Both the Bank's and the Company's capital levels continue to be significantly above the minimum levels required to be designated as "well-capitalized" for regulatory purposes.  On June 30, 2021, the Bank's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.28%, 13.23%, and 14.48%, respectively.  On June 30, 2021, on a consolidated basis, the Company's Tier 1 leverage ratio, Tier 1 risk based capital ratio, and total risk-based capital ratios were 11.26%, 13.22%, and 14.47%, respectively.  Designation as a well-capitalized institution under regulations does not constitute a recommendation or endorsement by bank regulators.

Pre-tax, pre-provision earnings is defined as income before taxes and provision for loan losses.  We believe the most directly comparable GAAP financial measure is income before taxes.  Disclosure of this measure enables you to compare our operations to those of other banking companies before consideration of taxes and provision expense.  We calculate our tax-adjusted net income, return on average assets, and return on average equity, and per share amounts by using a combined effective tax rate for federal and state income taxes of 24.3% and 24.9% in the second quarter of 2021 and 2020, respectively.  We acknowledge that our non-GAAP financial measures have a number of limitations.  As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other banking companies use.  Other banking companies may use names similar to those we use for non-GAAP financial measures we disclose, but may calculate them differently.  You should understand how we and other companies each calculate their non-GAAP financial measures when making comparisons.  The following reconciliation table provides a more detailed analysis of these non-GAAP financial measures:

 

		Three months ended  June 30,				Six months ended June 30,
(Dollars in thousands, except per share data)		2021		2020		2021		2020
Loan interest income (excluding loan fees)
Total loan interest income, including loan fee income		$           14,357		$            13,385		$           27,450		$           26,491
Loan fee income		(2,527)		(1,632)		(4,517)		(2,892)
Loan interest income excluding loan fee income		$           11,830		$            11,753		$           22,933		$           23,599
Average total loans		$         889,278		$          826,111		$         868,526		$         786,943
Yield on loans (including loan fee income)		6.48%		6.52%		6.37%		6.77%
Yield on loans (excluding loan fee income)		5.34%		5.72%		5.32%		6.03%
Pre-tax, pre-provision net earnings
Net income before income taxes		$             8,069		$              6,707		$           14,899		$           13,466
Plus: Provision for loan losses		1,300		1,400		2,575		2,050
Pre-tax, pre-provision net earnings		$             9,369		$              8,107		$           17,474		$           15,516
Adjusted provision for income tax
Net income before income taxes		$             8,069		$              6,707		$           14,899		$           13,466
Total effective adjusted tax rate		24.3%		24.9%		24.8%		25.1%
Adjusted provision for income taxes		$             1,964		$              1,671		$             3,690		$             3,379
Tax-adjusted net income
Net income before income taxes		$             8,069		$              6,707		$           14,899		$           13,466
Adjusted provision for income taxes		1,964		1,671		3,690		3,379
Tax-adjusted net income		$             6,105		$              5,036		$           11,209		$           10,087
Tax-adjusted ratios and per share data
Tax-adjusted net income (numerator)		$             6,105		$              5,036		$           11,209		$           10,087
Average assets (denominator)		$      1,024,751		$          971,373		$      1,003,444		$         923,087
Tax-adjusted return on average assets		2.39%		2.09%		2.25%		2.20%
Average shareholders' equity (denominator)		$         113,332		$            99,469		$         111,108		$         100,593
Tax-adjusted return on average shareholders' equity		21.61%		20.36%		20.34%		20.17%
Average tangible common equity (denominator)		$         111,822		$            97,760		$         109,573		$           98,858
Tax-adjusted return on average tangible common equity		21.90%		20.72%		20.63%		20.52%
Weighted average common shares outstanding basic (denominator)		9,050,606		9,232,509		9,050,295		9,598,232
Tax-adjusted net income per common share--basic		$               0.67		$                0.54		$               1.24		$               1.05
Weighted average common shares outstanding diluted (denominator)		9,074,408		9,232,509		9,066,797		9,598,232
Tax-adjusted net income per common share--diluted		$               0.67		$                0.54		$               1.24		$               1.05
Tangible assets
Total assets		$      1,133,031		$       1,004,085
Less: Goodwill and intangibles		(1,491)		(1,686)
Tangible assets		$      1,131,540		$       1,002,399
Tangible shareholders' equity
Total shareholders' equity		$         117,011		$          101,618
Less: Goodwill and intangibles		(1,491)		(1,686)
Tangible shareholders' equity		$         115,520		$            99,932
Tangible shareholders' equity
Tangible shareholders' equity (numerator)		$         115,520		$            99,932
Tangible assets (denominator)		$      1,131,540		$       1,002,399
Tangible common equity to tangible assets		10.21%		9.97%
End of period common shares outstanding		9,050,606		9,226,252
Book value per share		$             12.93		$              11.01
Tangible book value per share		$             12.76		$              10.83
Total shareholders' equity to total assets		10.33%		10.12%

 

 

		Net Interest Margin Excluding Loan Fee Income
		For the Three Months Ended June 30,
		2021						2020
		Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
		(Dollars in thousands)
Interest-Earning Assets:
Short-term investments(1)		$   128,643		$          64		0.20%		$ 134,764		$        156		0.47%
Investment securities(2)		1,187		15		5.07		1,089		15		5.54
Loans held for sale		557		-		-		222		-		-
Total loans(3)		889,278		11,830		5.34		826,111		11,753		5.72
Total interest-earning assets		1,019,665		11,909		4.68		962,186		11,924		4.98
Noninterest-earning assets		5,086						9,187
Total assets		$1,024,751						$ 971,373
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$    399,293		329		0.33%		$ 373,812		704		0.76%
Time deposits		212,212		443		0.84		219,990		923		1.69
Total interest-bearing deposits		611,505		772		0.51		593,802		1,627		1.10
Total interest-bearing liabilities		611,505		772		0.51		593,802		1,627		1.10
Noninterest-bearing liabilities:
Noninterest-bearing deposits		293,867						272,373
Other noninterest-bearing liabilities		6,047						5,729
Total noninterest-bearing liabilities		299,914						278,102
Shareholders' equity		113,332						99,469
Total liabilities and shareholders' equity		$ 1,024,751						$  971,373
Net interest income excluding loan fee income				$    11,137						$    10,297
Net interest spread excluding loan fee income(4)						4.18%						3.88%
Net interest margin excluding loan fee income						4.38%						4.30%

 

 

		Net Interest Margin With Loan Fee Income
		For the Three Months Ended June 30,
		2021						2020
		Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
		(Dollars in thousands)
Interest-Earning Assets:
Short-term investments(1)		$    128,643		$           64		0.20%		$  134,764		$         156		0.47%
Investment securities(2)		1,187		15		5.07		1,089		15		5.54
Loans held for sale		557		-		-		222		-		-
Total loans(3)		889,278		14,357		6.48		826,111		13,385		6.52
Total interest-earning assets		1,019,665		14,436		5.68		962,186		13,556		5.67
Noninterest-earning assets		5,086						9,187
Total assets		$ 1,024,751						$  971,373
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$    399,293		329		0.33%		$  373,812		704		0.76%
Time deposits		212,212		443		0.84		219,990		923		1.69
Total interest-bearing deposits		611,505		772		0.51		593,802		1,627		1.10
Total interest-bearing liabilities		611,505		772		0.51		593,802		1,627		1.10
Noninterest-bearing liabilities:
Noninterest-bearing deposits		293,867						272,373
Other noninterest-bearing liabilities		6,047						5,729
Total noninterest-bearing liabilities		299,914						278,102
Shareholders' equity		113,332						99,469
Total liabilities and shareholders' equity		$ 1,024,751						$  971,373
Net interest income including loan fee income				$    13,664						$    11,929
Net interest spread including loan fee income(4)						5.17%						4.56%
Net interest margin including loan fee income						5.37%						4.99%

 

(1)	Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.
(2)	Includes income and average balances for FHLB and FRB stock.
(3)	Non-accrual loans are included in loans.
(4)	Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

 

 

		Net Interest Margin Excluding Loan Fee Income
		For the Six Months Ended June 30,
		2021						2020
		Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
		(Dollars in thousands)
Interest-Earning Assets:
Short-term investments(1)		$   127,203		$      157		0.25%		$125,906		$      554		0.88%
Investment securities(2)		1,180		17		2.91		1,095		18		3.31
Loans held for sale		445		-		-		174		-		-
Total loans(3)		868,526		22,933		5.32		786,943		23,599		6.03
Total interest-earning assets		997,354		23,107		4.67		914,118		24,171		5.32
Noninterest-earning assets		6,090						8,969
Total assets		$1,003,444						$923,087
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$   412,070		691		0.34%		$358,167		1,714		0.96%
Time deposits		208,903		956		0.92		212,537		1,988		1.88
Total interest-bearing deposits		620,973		1,647		0.53		570,704		3,702		1.30
Total interest-bearing liabilities		620,973		1,647		0.53		570,704		3,702		1.30
Noninterest-bearing liabilities:
Noninterest-bearing deposits		266,237						246,630
Other noninterest-bearing liabilities		5,126						5,160
Total noninterest-bearing liabilities		271,363						251,790
Shareholders' equity		111,108						100,593
Total liabilities and shareholders' equity		$1,003,444						$923,087
Net interest income excluding loan fee income				$ 21,460						$ 20,469
Net interest spread excluding loan fee income(4)						4.14%						4.01%
Net interest margin excluding loan fee income						4.34%						4.50%
		Net Interest Margin With Loan Fee Income
		For the Six Months Ended June 30,
		2021						2020
		Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
		(Dollars in thousands)
Interest-Earning Assets:
Short-term investments(1)		$   127,203		$      157		0.25%		$125,906		$      554		0.88%
Investment securities(2)		1,180		17		2.91		1,095		18		3.31
Loans held for sale		445		-		-		174		-		-
Total loans(3)		868,526		27,450		6.37		786,943		26,491		6.77
Total interest-earning assets		997,354		27,624		5.59		914,118		27,063		5.95
Noninterest-earning assets		6,090						8,969
Total assets		$1,003,444						$923,087
Funding sources:
Interest-bearing liabilities:
Deposits:
Transaction accounts		$   412,070		691		0.34%		$358,167		1,714		0.96%
Time deposits		208,903		956		0.92		212,537		1,988		1.88
Total interest-bearing deposits		620,973		1,647		0.53		570,704		3,702		1.30
Total interest-bearing liabilities		620,973		1,647		0.53		570,704		3,702		1.30
Noninterest-bearing liabilities:
Noninterest-bearing deposits		266,237						246,630
Other noninterest-bearing liabilities		5,126						5,160
Total noninterest-bearing liabilities		271,363						251,790
Shareholders' equity		111,108						100,593
Total liabilities and shareholders' equity		$1,003,444						$923,087
Net interest income including loan fee income				$ 25,977						$ 23,361
Net interest spread including loan fee income(4)						5.05%						4.65%
Net interest margin including loan fee income						5.25%						5.14%

 

(1)	Includes income and average balances for fed funds sold, interest-earning deposits in banks and other miscellaneous interest-earning assets.
(2)	Includes income and average balances for FHLB and FRB stock.
(3)	Non-accrual loans are included in loans.
(4)	Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

 

 

Bank7 Corp.
Consolidated Balance Sheets
Dollars in thousands	Unaudited as of
Assets	June 30,		December 31,
	2021		2020
Cash and due from banks	$              187,732		$           153,901
Interest-bearing time deposits in other banks	5,478		16,412
Loans, net	919,687		826,974
Loans held for sale	1,334		324
Premises and equipment, net	8,889		9,151
Nonmarketable equity securities	1,187		1,172
Goodwill and intangibles	1,491		1,583
Interest receivable and other assets	7,233		7,152
Total assets	$           1,133,031		$        1,016,669
Liabilities and Shareholders' Equity
Deposits
Noninterest-bearing	$              330,061		$           246,569
Interest-bearing	678,488		658,945
Total deposits	1,008,549		905,514
Income taxes payable	2,574		9
Interest payable and other liabilities	4,897		3,827
Total liabilities	1,016,020		909,350
Common stock	90		90
Additional paid-in capital	93,635		93,162
Retained earnings	23,286		14,067
Total shareholders' equity	117,011		107,319
Total liabilities and shareholders' equity	$           1,133,031		$        1,016,669

 

 

Bank7 Corp.
Consolidated Statements of Income
		Unaudited as of
		Three Months Ended				Six Months Ended
		June 30,				June 30,
Dollars in thousands, except per share data		2021		2020		2021		2020
Interest Income
Loans, including fees		$             14,357		$             13,385		$             27,450		$             26,491
Interest-bearing time deposits in other banks		38		133		106		295
Interest-bearing deposits in other banks		42		38		68		277
							-
Total interest income		14,437		13,556		27,624		27,063
Interest Expense
Deposits		772		1,627		1,647		3,702
Total interest expense		772		1,627		1,647		3,702
Net Interest Income		13,665		11,929		25,977		23,361
Provision for Loan Losses		1,300		1,400		2,575		2,050
Net Interest Income After Provision for Loan Losses		12,365		10,529		23,402		21,311
Noninterest Income
Secondary market income		78		39		92		77
Service charges on deposit accounts		119		95		239		214
Other		382		167		585		340
Total noninterest income		579		301		916		631
Noninterest Expense
Salaries and employee benefits		2,949		2,597		5,739		5,071
Furniture and equipment		231		218		433		434
Occupancy		458		413		930		874
Data and item processing		286		269		565		545
Accounting, marketing and legal fees		149		77		297		203
Regulatory assessments		161		94		302		117
Advertising and public relations		71		29		105		298
Travel, lodging and entertainment		118		43		207		96
Other		452		383		841		838
Total noninterest expense		4,875		4,123		9,419		8,476
Income Before Taxes		8,069		6,707		14,899		13,466
Income tax expense		1,964		1,671		3,690		3,379
Net Income		$               6,105		$               5,036		$             11,209		$             10,087
Earnings per common share - basic		$                 0.67		$                 0.54		$                 1.24		$                  1.05
Diluted earnings per common share		0.67		0.54		1.24		1.05
Weighted average common shares outstanding - basic		9,050,606		9,232,509		9,050,295		9,598,232
Weighted average common shares outstanding - diluted		9,074,408		9,232,509		9,066,797		9,598,232

 

 

About Bank7 Corp.

We are Bank7 Corp., a bank holding company headquartered in Oklahoma City, Oklahoma. Through our wholly-owned subsidiary, Bank7, we operate nine locations in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area and Kansas. We are focused on serving business owners and entrepreneurs by delivering fast, consistent and well-designed loan and deposit products to meet their financing needs. We intend to grow organically by selectively opening additional branches in our target markets as well as pursue strategic acquisitions.

Conference Call

Bank7 Corp. has scheduled a conference call to discuss its first quarter results, which will be broadcast live over the Internet, on Thursday, July 29, 2021 at 4:30 p.m. Eastern Time. To participate in the call, dial 1-888-348-6421, or access it live over the Internet at https://www.webcaster4.com/Webcast/Page/2179/41916. For those not able to participate in the live call, an archive of the webcast will be available at https://www.webcaster4.com/Webcast/Page/2179/41916 shortly after the call for 1 year.

Cautionary Statements Regarding Forward-Looking Information

This communication contains a number of forward-looking statements. These forward-looking statements reflect Bank7 Corp.'s current views with respect to, among other things, future events and Bank7 Corp.'s financial performance. Any statements about Bank7 Corp.'s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as "anticipate," "believes," "can," "could," "may," "predicts," "potential," "should," "will," "estimate," "plans," "projects," "continuing," "ongoing," "expects," "intends" and similar words or phrases. Any or all of the forward-looking statements in (or conveyed orally regarding) this presentation may turn out to be inaccurate. The inclusion of or reference to forward-looking information in this presentation should not be regarded as a representation by Bank7 Corp. or any other person that the future plans, estimates or expectations contemplated by Bank7 Corp. will be achieved.

These forward-looking statements are subject to significant uncertainties because they are based upon:  the amount and timing of future changes in interest rates, market behavior, and other economic conditions; future laws, regulations, and accounting principles; changes in regulatory standards and examination policies, and a variety of other matters.  These other matters include, among other things, the impact of COVID-19 on the United States economy and our operations, the direct and indirect effect of economic conditions on interest rates, credit quality, loan demand, liquidity, and monetary and supervisory policies of banking regulators.  Bank7 Corp. has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that Bank7 Corp. believes may affect its financial condition, results of operations, business strategy and financial needs. Bank7 Corp.'s actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. If one or more events related to these or other risks or uncertainties materialize, or if Bank7 Corp.'s underlying assumptions prove to be incorrect, actual results may differ materially from what Bank7 Corp. anticipates. You are cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made and Bank7 Corp. undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as may be required by law. All forward-looking statements herein are qualified by these cautionary statements.

About Non-GAAP Financial Measures

This communication includes certain non-GAAP financial measures, including tax-adjusted net income, tax-adjusted earnings per share, tax-adjusted return on average assets and tax-adjusted return on average shareholders' equity. These non-GAAP financial measures and any other non-GAAP financial measures that we discuss in this presentation should not be considered in isolation, and should be considered as additions to, and not substitutes for or superior to, measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Bank7 Corp.'s non-GAAP financial measures as tools for comparison. See the table above in this communication for a reconciliation of the non-GAAP financial measures used in (or conveyed orally during) this communication to their most directly comparable GAAP financial measures.

Contact:

Thomas Travis
President & CEO
(405) 810-8600

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SOURCE Bank7 Corp.

FAQ

What were Bank7 Corp's Q2 2021 earnings results?

In Q2 2021, Bank7 Corp reported net income of $6.1 million, up 21.2% from Q2 2020, and an EPS of $0.67, a 24.9% increase.

How did total assets and loans perform in Q2 2021 for BSVN?

Total assets increased by 12.8% to $1.1 billion, while total loans grew by 11.2% to $932 million compared to Q2 2020.

What is the efficiency ratio reported by Bank7 Corp for Q2 2021?

Bank7 Corp reported an efficiency ratio of 35.02% for Q2 2021, slightly improved from 35.33% in Q2 2020.

What is the tangible book value per share for BSVN as of June 30, 2021?

The tangible book value per share for Bank7 Corp as of June 30, 2021, was $12.76, representing a 17.8% increase from the previous year.